\u3000\u3 Shengda Resources Co.Ltd(000603) 290 Starpower Semiconductor Ltd(603290) )
Event overview
The company released its annual report for 2021. In 2021, the company achieved a revenue of 1.707 billion yuan, a year-on-year increase of 77.22%; The net profit attributable to the parent company was 398 million yuan, a year-on-year increase of 120.49%.
Quarter on quarter growth in 2021, and the proportion of new energy business increased
Looking back on the whole year of 2021, the company achieved quarterly growth. In Q4 of 2021, the company achieved a revenue of 510 million yuan, a year-on-year increase of 72.94% and a month on month increase of 6.69%. In Q4, the net profit attributable to the shareholders of the parent company was 130.2 million yuan, a year-on-year increase of 183.22% and a month on month increase of 16.81%. In 2021, the company achieved a gross profit margin of 36.73%, an increase of 5.17 percentage points compared with 31.56% in 2020. From the perspective of product structure, the revenue of the company’s industrial control and power supply, new energy industry, frequency conversion white appliances and other three major sub industries was 1.065 billion yuan, 571 million yuan and 60 million yuan respectively, and the revenue of other businesses was 11 million yuan. In 2021, the company’s new energy business accounted for 33.45%, an increase of 11.12 percentage points compared with 22.33% in 2020. According to the data of the company’s annual report, among them (1) new energy vehicles: the company’s vehicle specification level IGBT modules applied to the main motor controller continue to be produced in large quantities, supporting more than Shanghai Pudong Development Bank Co.Ltd(600000) new energy vehicles in total, including more than 150000 class A and above models. At the same time, the company’s share of semiconductor devices in vehicle air conditioning, charging pile, electronic power steering and other new energy vehicles has further increased. From the technical point of view, the company has successfully developed a new generation of vehicle specification 650V / 750V / 1200V IGBT chip based on the seventh generation micro trench field stop technology, and is expected to start mass supply in 2022. At the same time, the company has added several main motor controller projects of 800V system using all sicmosfet modules, which will provide a continuous driving force for the company’s SiC module sales growth from 2023 to 2029. As a leading third-generation compound semiconductor enterprise in China, the company is expected to fully benefit from the improvement of SiC penetration rate; (2) Photovoltaic power generation: the company uses its own 650V / 1200V IGBT chips and modules and discrete devices supporting fast recovery diode chips for mass installation and application in China’s mainstream photovoltaic inverter customers. It is expected that the market share will increase rapidly in 2022.
Multi-point efforts, domestic IGBT leaders are committed to improving the market share
According to the company’s annual report, benefiting from the substantial increase in demand in the fields of industrial control, new energy and new energy vehicles, the scale of China’s IGBT market will continue to grow. By 2025, the scale of China’s IGBT market will reach 52.2 billion yuan, with an annual compound growth rate of 19.11%, which is the fastest developing semiconductor power device in the segment market. We believe that at present, the global power capacity of 8 inches and 12 inches is in short supply. The company further strengthens cooperation with the supply chain, improves the market share of the company in the field of IGBT and makes efforts in many fields. In the future, the company will continue to focus on the semiconductor device market of new energy vehicles and fuel vehicles. In the field of drive controllers for new energy vehicles, customers will provide vehicle specification level IGBT modules in the full power section, and provide mature vehicle specification level SiC modules for high-end models, so as to improve the product layout of auxiliary drive and vehicle power supply market. In addition, we will continue to cultivate deeply in the industrial control and power supply industry. Relying on the performance advantages, cost advantages and delivery advantages of the company’s 650V / 750V, 1200V and 1700V independent chip products, we will continue to make efforts in the fields of frequency converter, electric welding machine, elevator controller, server and power supply, improve the procurement share of existing customers, continue to develop new customers and continue to improve the market share.
Investment advice
Based on the high prospect of the industry and the acceleration of the overall substitution of the power sector, we adjusted the previous profit forecast. It is expected that the company will achieve revenue of 2.85 billion yuan, 4.15 billion yuan and 5.4 billion yuan from 2022 to 2024 (the previous revenue from 2022 to 2023 is expected to be 1.88 billion yuan and 2.45 billion yuan respectively); It is estimated that the net profit attributable to the shareholders of the parent company from 2022 to 2024 will be 689 million yuan, 930 million yuan and 1222 million yuan (the previous forecast data of net profit attributable to the parent company from 2022 to 2023 were 413 million yuan and 532 million yuan respectively). The predicted EPS from 2022 to 2024 are 4.04 yuan, 5.45 yuan and 7.16 yuan respectively (previously, the predicted EPS from 2022 to 2023 are 2.58 yuan and 3.32 yuan respectively), and the PE corresponding to the closing price of 347.70 yuan on April 8, 2022 are 86.05 times, 63.79 times and 48.53 times respectively. In view of the company’s leading position in the field of IGBT design / sealing test and sufficient growth space in the future, the “buy” rating is maintained.
Risk tips
The sales volume of new energy vehicles is lower than expected, the domestic substitution is lower than expected, the technical threshold of IGBT chip, fast recovery diode chip and IGBT module is high, the technical difficulty is large, the capital requirements are high, and there are risks of lower than expected product R & D progress and technology disclosure.
